Welcome to WordPress. This is your first post. Edit or delete it, then start writing!
Midpoint formula The elasticity $$\epsilon$$ can be calculated using the midpoint formula: $$\epsilon = 100*\frac{\frac{Q_1 – Q_0}{\bar{Q}}}{ \frac{P_1 – P_0}{\bar{P}}}$$…
Cobb-Douglas function
tThe Cobb-Douglas function is used to measure consumers preferences between different bundles of goods or how a firm can combine…
Calculate the equilibrium price and quantity from math equations
In this post, I will cover how to find the equilibrium quantity and price when given an equation representing the…
Price floor and tax on cheese market
Price floor on the cheese marketTax on the cheese market Price floor on the cheese market Suppose that the government…
Consumer, producer and total surplus
Producer surplus from supply scheduleCalculate producer surplus from supply curve Consumer and producer are both economic measures of welfare. Consumer…
Supply schedule
In economics, the term ‘supply’ is used to describe how many goods and services people are willing to sell for…
Terms of trade
Often, as economists, we are interested in measuring how expensive imports are compared to the price received for exports. The…
Consumer Price Index (CPI) and inflation rate formula
Consumer price index formulaCalculate CPI with one goodCalculate CPI with two goodsInflation rate formulaCalculate inflation rate with one goodCalculate inflation…
Isoquant and isocost line
The isocost and isoquant line are used to determine the cost minimising level of output produced by a competitive firm.…